(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Rising Houston sales"

Dollar Sales 
(Billions) 



2.50 



2.25 



2.00 



1.75 



1.50 



1.25 



1.00 



.75 



1948 



fio.og 
6979/ 

7U»3 





IN 




HOUSTON SALES 




U. OF F. LIBRARIES 

by John R. Young 



■■::■,: :,■:-.- ■<■:■■ :■■■■ ■■■■ ■: „ . ■ ■ ■ ■:.,■:■■,'::. .v.'-, :: : -.,:,.,:■■■■.■'. ■ ■:■:■■:■ ■■: ■■ : . .. :-:-::\: .■■ ■■ ■■■■ :: ': : : ■. . ■:■:■<■ ■■:..:■ .■ ■■■■■-:■:■:.■■:, 



1958 



1963 



1968 



1972 



Center for Research in Business and Economics 
University of Houston 



UNIVERSITY 
OF FLORIDA 
LIBRARIES 




Center for Research in Business and Economics 
University of Houston 



L. D. Belzung, Editor 



BUSINESS INFORMATION 
SERVICE STUDY NO. 3 



RISING HOUSTON SALES 



Retail, Wholesale, and Service 

Business 

1963 and 1958 Comparison 



By 
John R. Woung 



Center for Research in Business and Economics 

College of Business Administration 

University of Houston 



Houston, Texas 
February, 1966 




13 Hi^l 



Digitized by the Internet Archive 

in 2013 



http://archive.org/details/risinghoustonsalOOyoun 



Standard Metropolitan 
Business District, a 



, TEXAS 

Statistical Area, Central 
/iajor Retail Centers 



STANDARD METROPOLITAN 
STATISTECAL AREA 
& CENTRAL CSTY 




Comprising Census Tracts 23, 24, 
25, 26, 27, 31, 32, 33 and 39 



1000 2000 3000 FEET 



U.S. DEPARTMENT OF COMMERCE 



BUREAU OF THE CENSUS 



Introduction 



\ 



The U. S. Government's Department of Commerce publication, Census of 
Business , is of special interest to the business community for a number of 
reasons. A comparison of figures from the most recent census with that of 
preceding publications, for example, is useful in describing a number of 
dimensions of growth of an area or a community. Included in these dimensions 
of growth are retail sales, wholesale trade, and receipts of selected service 
businesses. Suppliers of investment capital, as another example, examine 
particular businesses for evidence of growth (or decline). Statistics 
contained in the publication, when compared to previous issues, may be help- 
ful in measuring business opportunity. The publication has valuable infor- 
mation for those who are interested in the average or typical size of a 
certain type of business--size measured by either an average or a range 
of annual sales volume, or by the number of paid employees. Since the 
publication also has data relating to payrolls, persons who are interested 
in determining trends of average wages or salaries for particular businesses 
can obtain useful information. Finally, those who have a particular interest 
in the retailing scene, with special curiosity as to suburban shopping 
center development trends, can obtain data relating to central business 
district sales as compared to those in outlying areas. 

The purpose of this study is to examine the portion of this census 
which deals with retail, wholesale, and selected service business for the 
State of Texas, Houston, and Harris County for the years 1963 and 1958. 
The 1963 issue of the Census of Business has been available only a limited 
number of months, and some of the analyses which make up this census had 



still not been received by the field office of the Department of Commerce 
in HoiSton at the time of this writing. 

Summary of Texas Figures 

During the six-year period covered by this study, retail sales in 
Texas increased by about 12 per cent in constant dollar volume, mostly 
because of relatively large increases in sales of establishments in the 
general merchandise category and automotive dealers. In 1963, there were 
slightly less than 100,000 retail establishments in the state, representing 
a 3 per cent increase over 1958. Average annual sales per establishment 
for Texas increased from about $108,900 in 1958 to approximately $131,800 
in 1963. Average weekly earnings of retail employees in 1963 were about 
$60, compared with $53.50 for 1958. Of ten selected trading areas in 
Texas — excluding Houston—Lubbock , Austin, and Amarillo showed gains, 
in constant dollars, of between 20 and 30 per cent for the six-year period, 
while Galveston, Corpus Christi, and the Beaumont-Port Arthur area had 
either slight increases or, in the case of Corpus Christi, a small decline. 

More than one-third of the retail sales volume for the state came 
from some 2 per cent of the establishments in 1963, and about 37 per cent 
of the small volume establishments were responsible for only about 3 per 
cent of total sales. 

Wholesale sales for Texas during the six-year period increased by 
about 27 per cent. These establishments averaged approximately $1 million 
in sales for 1963. Average weekly earnings of employees in the wholesale 
group were $105 in 1963, approximately $45 more a week than those of 
retail workers. 



Approximately 60,000 service establishments in the state had receipts 
in 1963 totaling $1.9 billion, which represents a gain over 1958 of about 
28 per cent in constant dollar volume--more than double the increase of 
retail trade. Average annual receipts for service establishments were slightly 
over $30,000, ranging from a high of $66,000 for miscellaneous business 
services to a low of about $18,000 in the personal services category. 

Retail sales for the State of Texas in 1972, based on a least squares 
projection technique, should be about $14.7 billion, expressed in 1958 
dollars, which represents an increase of approximately 22 per cent over 
the 1963 volume. 

Summary of Houston Figures 

Houston retail sales, for the six-year period, increased in constant 
dollar volume by about 21 per cent, exceeding the 12 per cent gain for the 
state. The largest increases for Houston were in the general merchandise 
category and automotive dealers. Despite a significant gain in sales, the 
number of retail establishments increased very slightly during the period. 
Average annual sales per establishment increased from $139,000 in 1958 to 
$175,000 in 1963. Average weekly earnings for retail employees in 1963 
were $66, compared with about $59 for 1958--both figures being somewhat 
above the Texas averages. Slightly more than one-third of Houston's retail 
firms had sales volumes of less than $30,000 for 1963, and about 3 per cent 
of the establishments had sales volumes of more than $1 million or more. 

Houston consumers in 1963 spent about 40 per cent of their retail 
dollars for food and automobiles. They also spent more for packaged 
alcoholic beverages and tobacco products than they spent for men's and 
boys' clothing. Houstonians spent about twice as much for women's and 
girls' apparel as they did for men's and boys' clothing. Expenditures for 
alcoholic beverages exceeded amounts spent for footwear. 



4 

Houston department stores in 1963 were responsible for the sale of 
more than twice as much women's and girls' apparel as were women's clothing 
stores. The department stores sold almost as much footwear as was sold in 
shoe stores. They sold more hardware than was sold by hardware stores, 
and their volume of major appliances was almost four times that of house- 
hold appliance stores. 

Retail sales for Metropolitan Houston (Harris County) increased by 
21 per cent, as pointed out previously, but sales in the central business 
district decreased by 5 per cent, during the six-year period of analysis. 
At the same time, sales of establishments in suburban Houston (the difference 
between Metropolitan Houston and the central business district) increased 
by 35 per cent. 

Of the planned suburban shopping centers in Houston, Gulfgate 
Shopping City showed the largest increase during the six-year period, some- 
what more than 80 per cent in unadjusted dollar volume. Also, Gulfgate 
was the only shopping center having a sales volume in excess of $50 million, 
while Sharpstown Center had sales of about $32 million. 

Houston's wholesale trade volume increased, during the six-year 
period, by about 23 per cent. Average weekly earnings for wholesale 
employees during 1963 were approximately $117 , as compared with $105 for 
the state as a whole. Average annual wholesale sales per establishment 
were $1.6 million in 1963 as compared with $1 million for the state. 

Service establishments for Houston did about 42 per cent more business 
in 1963 than in 1958, expressed in constant dollars. Average annual receipts 
per service establishment were $44,000, some $14,000 higher than the average 
for the State of Texas. 



Houston retail sales in 1972 should be approximately $2.3 billion, 
representing an increase over 1963 of about 26 per cent. 



State of Texas Figures 



Retail Sales 



The total volume of retail sales in the state for the year 1963 
was estimated to be $12.7 billion as compared with about $10.7 billion in 
1958. This represents an increase of $2 billion on the basis of unadjusted 
dollar volume or almost a 19 per cent increase. By deflating the 1963 
dollars to the level of those of 1958, the increase in physical volume is 
slightly less than 12 per cent. 

Between 1958 and 1963, sales of food establishments in the state 
increased by more than $300 million, representing an increase in dollar 
volume of slightly over 12 per cent, and an increase in physical volume 
(computed by deflating the 1963 food dollar to 1958 price levels) of 
somewhat over 10 per cent. Sales in the general merchandise group increased 
by almost $400 million, representing an increase in dollar volume of 
about 33 per cent, and an increase in physical volume of slightly more 
than 26 per cent. Apparel sales increased by about 15 per cent and 
9 per cent in dollar and physical volume respectively. Automotive dealer 
sales for Texas increased by more than $600 million from 1958 to 1963, 
an increase of about 30 per cent in dollar volume and approximately 23 
per cent in physical volume. Table 1 presents a tabulation of retail sales 
for the State of Texas for 1963 and 1958, expressed in 1958 dollars. 

The number of establishments engaged in retailing in the state showed 
an increase during this period from about 96,000 in 1958 to approximately 
99,000 in 1963, representing a gain of 3 per cent. This continues a trend 
that has held in the state for some time. There were about 84,000 establish- 
ments in 1948 and around 91,000 in 1954. However, since the increase in sales 



Table 1 
RETAIL TRADE --STATE OF TEXAS 
(In 1958 Dollars 3 ) 



Retail Store Category 



1958 


1963 b 


Per Cent 


(000) 


(000) 


Change 


10,792,599 


12,077,675 


11.9 


848,858 


795,627 


5.6 C 


1,172,663 


1,486,065 


26.7 


2,601,591 


2,882,472 


10.7 


2,083,119 


2,568,610 


23.3 


879,752 


972,006 


10.5 


624,215 


680,7 35 


9.1 


494,474 


494,67 3 


.4 


594,744 


689,247 


15.9 


376,178 


426,297 


13.3 


890,495 


955,489 


7.3 



Total 

Lumber, Building, Hardware 

General Merchandise Group 

Food Group 

Automotive Dealers 

Gcsoline Service Stations 

Apparel and Accessory Stores 

Furniture, Furnishing, Appliances 

Eating and Drinking Places 

Drug Group 

Other Retail Stores 



Deflation involved use of appropriate BLS Indexes for specific categories or 
all item index when applicable. 

"Sum of specific items does not equal total because of omissions, rounding, 
and use of different indexes for deflation. 
c Decrease 

SOURCE: 1963 Census of Business, Retail Trade, Texas , Bulletin BC63-RA45 , 
U. S. Department of Commerce, Bureau of the Census. 



8 

expressed either in dollar volume or physical volume, has been greater than 
the increase in the number of establishments, it may be concluded that, 
typically, retailing is more and more concentrated in larger volume establish- 
ments. Additional evidence of this conclusion is pointed out later in a 
discussion of average annual sales per establishment. 

The fact that the total number of establishments for the state 
increased between 1958 and 1963 does not necessarily mean that this was 
true in all categories. The following major groupings showed increases 
in the number of establishments: automotive dealers; gasoline service 
stations; apparel and accessory stores; and, "other"--which includes 
liquor stores, antique dealers, book and stationery stores, sporting 
goods and bicycle dealers, and farm and garden supply stores. On the other 
hand, the following showed decreases: hardware, lumber and building materials 
dealers; the general merchandise group (but not department stores); food 
stores (the most important sub-category here being supermarkets) ; furniture 
and home furnishings stores; eating and drinking establishments (slightly 
fewer eating places and somewhat more drinking establishments); and, drug 
stores (a slight decrease). With the exception of automotive dealers and 
perhaps some apparel and accessory stores, most of the categories showing 
increases in the number of establishments are not typically the large volume 
establishments that some of those showing declines would normally tend to 
be, particularly the general merchandise and food store groups. 

Additional evidence that retail sales tend to be more concentrated in 
larger establishments is found by one's examining average annual sales per 
establishment. The over-all average for all retail stores for the state 
in 1963 was approximately $131,800. In 1958, this average was $108,900, 
and it was $98,000 in 1954. The average for all stores in 1948 was $76,000. 



The average annual sales volume per food establishment was $173,500 in 
1963, and $141,700 in 1958. In the general merchandise group, the two 
figures were $410,700 and $230,400. Comparison of these two averages 
for department stores for the two years indicates very little change. 

The Census of Business also contains information on total payrolls 
and number of paid employees for the full workweek ending on or about 
November 15. The average weekly earnings for all retail employees in the 
state for that particular week in 1963 was approximately $60, compared 
with $53.50 for 1958. The average weekly earnings for all retail employees 
for the same week in 1954 were only slightly less than those of 1958, 
specifically $51. Average weekly earnings for employees in the general 
merchandise group were about $56 in 1963, as compared with approximately 
$53 in 1958. In the food store group, the 1963 figure of $56 was about 
$3 above the 1958 average. Department store employees' weekly earnings 
in 1963 were around $64, which was almost the same as the 1958 figure. 
Weekly earnings for employees in the furniture and home furnishings cate- 
gory were about $77, $12 per week greater than in 1958. Workers in the 
apparel group earned about $54 per week in 1963, while they earned 
approximately $50 in 1958. A rather significant difference was found 
in the weekly earnings of employees of automotive dealers when the two 
years are compared. The 1963 figure was slightly over $90, while it 
was about $7 5 in 1958. 

While the increase in retail sales for the State of Texas, expressed 
in 1958 dollars, was about 12 per cent, there was considerable variation 
in the important trading areas throughout the state when compared to this 
increase. An analysis of ten selected trading areas (excluding Houston) , 
defined by the Census of Business as Standard Metropolitan Statistical Areas, 



10 

indicates that the per cent of change ranged from an increase of slightly- 
over 28 per cent for the Lubbock trading area to about a 2 per cent decline 
for Corpus Christi. Table 2 shows a comparison of sales for each of these 
trading areas, together with percentages of change. 

A separate bulletin of the Census of Business relates to retail sales 
broken down by annual sales volume. Table 3 makes a comparison of 1958 and 
1963 ratios, showing both the per cent of establishments in each sales 
size category and the ratio of sales made by that sales-size group. The 
fact that around 2 per cent of establishments are responsible for roughly 
one-third of total retail sales for the state is additional evidence that 
retailing tends to be more and more concentrated in larger volume establish- 
ments. On the other hand, since approximately twc-fifths of the establish- 
ments have sales volumes of less than $30,000, it is equally evident that 
there are a significant number of small retailing businesses in existence. 

As the table reveals, slightly more firms in 1963 were in the $1 
million and over sales-size category, as compared with 1958, and somewhat 
fewer companies were in the $30,000 or less size group. This may be 
attributable to the increased size of the typical establishment, but it 
is more likely that somewhat higher price levels in 1963 are responsible. 

In the general merchandise group, which consists of department 
stores, dry goods establishments, and limited variety stores among others, 
more than 60 per cent of sales were made by about 3 per cent of the establish- 
ments. From the ''food group," grocery store (primarily supermarkets) 
sales, slightly less than 40 per cent of volume came from about 4 per cent 
of the stores. 



Table 2 

RETAIL TRADE--STATE OF TEXAS 
A COMPARISON OF TEN SELECTED TRADING AREAS 

(In 1958 Dollars 3 ) 



11 



Trading Area 



1958 


1963 


Per Cent 


(000) 


(000) 


Change 


211,286 


253,583 


20.1 


218,716 


270,570 


23.7 


349,633 


368,780 


5.5 


254,688 


250,823 


1.5 b 


1,472,860 


1,718,320 


16.7 


323,678 


360,216 


11.3 


744,932 


809,615 


« 

8.7 


152,165 


155,052 


1.8 


213,817 


274,838 


28.5 


679,661 


766,658 


12.8 



Amarillo 

Austin 

Beaumont, Port-Arthur 

Corpus Christi 

Dallas 

El Paso 

Fort Worth 

Galveston 

Lubbock 

San Antonio 



Deflation involved use of appropriate BLS Indexes for specific categories or 
all item index when applicable. 
°Decrease 

SOURCE: 1963 Census of Business, Retail Trade, Texas , Bulletin BC63-RA45, 
U. S. Department of Commerce, Bureau of the Census. 



Table 3 
RETAIL TRADE- -STATE OF TEXAS 
BY SALES SIZE 



12 



Annual Sales Size 
Category 



1958 



Per Cent Per Cent 
of of 

Establishments Sales 



1963 



Per Cent Per Cent 
of of 

Establishments Sales 



$1,000,000 or more 

$500,000 - $999,999 

$300,000 - $499,999 

$100,000 - $299,999 
$50,000 - $99,999 
$30,000 - $49,999 
Less than $30,000 
TOTAL 



1.4 


29.9 


2.1 


35.6 


2.2 


13.5 


2.8 


13.8 


3.1 


10.6 


3.7 


10.1 


16.4 


23.9 


19.5 


22.8 


18.4 


11.5 


20.3 


10.3 


15.6 


5.4 


14.4 


3.9 


42.9 


5.2 


37.2 


3.5 



100.0 



100.0 



100.0 



100.0 



SOURCE: 1958 and 1963 Census of Business , Bulletins BC58-RS1 and BC63-RS2, 
U. S. Department of Commerce, Bureau of the Census. 



13 



Wholesale Trade 

The portion of the 1963 Census of Business dealing with wholesale 
trade indicates that the volume of wholesale sales for the State of Texas 
was about $18.3 billion, an increase of about $4 billion over 1958. This 
represents an increase in dollar volume of approximately 27 per cent. For 
purposes of the analyses in this study, no attempt is made to convert 
wholesale sales figures of 1963 to the price level of 1958. The reason 
for this is the fact that wholesale price indexes for the two years were 
almost identical, which means that changes in physical volume would 
correspond very closely to dollar volume changes. The most important 
categories of wholesale trade for 1963, expressed in terms of dollar 
volume, are as follows: groceries and related products, $2.7 billion; 
farm product raw materials, $2.6 billion; and, motor vehicles and auto- 
motive equipment, $2.2 billion. Almost all of the major categories of 
wholesale trade--as well as the sub-divisions within a category — showed 
sales increases from 1958 to 1963. Two exceptions to this were wholesale 
sales of fresh fruits and vegetables, showing a decrease of about $2 
million, and, tobacco and tobacco products wholesale volume which declined 
by about $24 million. 

Changes in dollar volume (which would closely correspond to changes 
in physical volume, as pointed out previously) of some of the more 
important categories of wholesale trade for the state between 1958 and 1963 
would include: Grocery and related products showed a 23 per cent increase; 
dry goods and apparel was up by about 31 per cent; the increase in 
electrical goods volume was 34 per cent; hardware, plumbing, and heating 
supplies volume increased by 13 per cent; motor vehicles and automotive 



14 

equipment sales were greatr^ bv about 59 per cent; and, machinery and 
equipment supplies wholesale volume was 16 per cent greater. 

Weekly earnings of employees engaged in the wholesale trade in the 
state during the workweek ending on or about November 15, 1963, were about 
$105, which is approximately $45 higher than average weekly earnings for 
retail employees during the same workweek. Some of the weekly earnings 
for employees in particular wholesale businesses include: motor vehicles 
and automotive equipment, $106; dry goods and apparel, $97; groceries and 
related products, $89; electrical goods, $126; hardware, plumbing, and 
heating supplies, $109; tobacco and tobacco products, $86; petroleum bulk 
stations and terminals, $98; and beer, wine, and alcoholic beverage dealers, 
$104. 

Average annual sales per wholesale establishment during the year 
1963 were approximately $1 million. The average for motor vehicle and 
automotive parts wholesalers was about $1.1 million, while it was around 
$1 million for dry goods and apparel wholesale establishments. The average 
sale per grocery and related products establishment for the year was 
$1.3 million; $1.1 million for electrical products wholesalers; $.8 million 
for hardware, plumbing, and heating equipment establishments; $.5 million 
for petroleum bulk stations and terminals; $1.7 million for tobacco and 
tobacco products wholesalers; and, $1.1 million for beer, wine, and 
alcoholic beverage wholesale establishments. 

Almost two-thirds of the wholesaling establishments in the state 
during 1963 were of the merchant wholesaler type, the so-called full-service 
wholesaler who normally performs most of the important wholesaling functions, 
particularly keeping stocks, taking title to merchandise in which he deals, 
and often providing credit to customers with whom he deals. Approximately 



15 

13 per cent of the establishments were classified as "other," and included 
particularly petroleum bulk stations and terminals and assemblers of farm 
products. About 9 per cent were classified as manufacturers' sales branches 
and salens offices, while about 7 per cent of them were agents and brokers. 

Service Establishments 

The section of the 1963 Census of Business dealing with receipts of 
selected service establishments should be of interest to various groups. 
On the one hand, consumers would normally tend to be interested in statistics 
of this area, because of the claim that the cost of services in recent years 
has represented a higher proportion of total consumer expenditures. It 
also is assumed that data on services would be of interest to those persons 
contemplating the establishment of various types of service businesses. 

Receipts of approximately 60,000 service establishments in the 
State of Texas amounted to about $1.9 billion in 1963, compared with 
approximately $1.4 billion in 1958. This represents a gain of about 35 
per cent in dollar volume and an increase of approximately 28 per cent in 
terms of 1958 consumer price levels. 

The dollar volume receipts of establishments classified in the 
personal services category, which includes laundry, dry cleaning, beauty 
and barber shops, and similar establishments, increased by about 25 per cent 
in dollar volume between 1958 and 1963, representing a gain of around 19 
per cent in 1958 dollars. Receipts of auto repair, auto services, and 
garage establishments showed gains of about 28 per cent in dollar volume 
and about 21 per cent in physical volume. The miscellaneous repair service 
category — including appliance, watch, clock, jewelry, and furniture 
repair — increased by 38 per cent in dollar volume and by 31 per cent in 



16 

1958 dollars. 

A comparison of the increases in either dollar or physical volume 
for service establishments in the state between 1958 and 1963 with increases 
in sales volume of retail establishments indicates that the increases 
shown by the former exceeded by a rather considerable amount the increases 
of the latter. It will be recalled that the over-all increase in sales 
for all retailing establishments was around 19 per cent in dollar volume 
and about 12 per cent in physical volume, compared with increases of 35 
per cent and 28 per cent, respectively, in dollar and physical volume, for 
receipts of service establishments. From this, it would be highly ques- 
tionable to conclude that a greater portion of total personal consumption 
expenditures is going for services rather than for goods, but perhaps 
it would be reasonable to suggest that this might be a possibility. 

Average annual receipts for all service establishments in the 
state during 1963 were approximately $31,000 per establishment, considerably 
less than the average sales per establishment in wholesaling of about $1 
million and around $132,000 for sales per retailing establishment. Service 
businesses for many years have been characterized by small, rather than 
large, operations. If the assumption of a relationship between size of 
business and efficiency is considered valid, then questions could be 
raised as to the efficiency of the average service establishment, as com- 
pared with either the typical retailing or wholesaling venture. Somewhat 
related questions also could be raised relative to the impact of prices 
charged by some of the less efficient service establishments. Perhaps it 
could be assumed that if there were fewer establishments in some of the 
categories — making it possible for these firms to be bigger--they could be 



I 



17 

more efficient and perhaps charge somewhat lower prices. On the other hand, 
it could be argued that the relative ease of entry into many of these service 
businesses provides the broad competitive environment which induces both 
efficiency and the charging of prices which include relatively small returns 
on investments. 

The approximately $31,000 average annual receipts per service 
establishment also is relatively small when expressed on the basis of daily 
receipts. If it is reasonable to assume that there are about 315 working 
days during a 365-day year, then receipts per day are slightly less than 
$100. Average annual receipts per establishment in the personal services 
category are approximately $18,000, or not much more than $50 per day. 
This category includes laundries, dry cleaning establishments, beauty and 
barber shops, and shoe repair businesses, all of which are typically 
small firms. Average annual receipts per establishment in the miscellaneous 
business services group, which includes advertising and public relations, 
credit bureaus, collection agencies, and mailing services, are considerably 
higher, about $66,000, or slightly more than $200 per working day. 

Average annual receipts per establishment in the auto repair, auto 
service, and garage category are about $30,500, and again, slightly less 
than $100 receipts per day. The same average for miscellaneous repair 
businesses, particularly appliances, clocks and watches, and furniture, is 
about $21,000, or around $70 per working day. Average annual receipts per 
establishment in the motion picture category (down from 1958) were about 
$33,000, or around $230 per day for a 365-day year. Finally, receipts for 
other amusement and recreation service businesses were about $31,000 per 
establishment for the year, or about $85 per day. 



I 
I 
I 



18 

1968 and 1972 Retail Sales Projection 

As a final topic in an analysis of State of Texas figures, a projection 
of retail sales through 1968 and 1972 is presented. The procedure employed 
is that of the widely used statistical technique, the least squares method. 
By interpolating figures between known values (1948, 1954, 1958, and 1963), 
all expressed in 1958 dollars, and by using the standard least squares 
technique, a trend line with projections through 1972 is presented as 
Chart 1, It is believed that the trend line is an acceptable "fit" to the 
extent that it matches almost perfectly the four actual values. 

State of Texas retail sales in 1968 should be approximately $13.6 
billion and about $14.7 billion in 1972, both figures being expressed in 
terms of 1958 dollars. The 1972 estimate represents an increase of 22 per 
cent, as compared with the known 1963 sales volume. 

Metropolitan Houston Figures 

The second and concluding section of this study relates to estimated 
retail sales, the volume of wholesale trade, and receipts of service 
establishments for Metropolitan Houston, which the Census of Business defines 
as a SMSA or a Standard Metropolitan Statistical Area. The SMSA is further 
iefined as an area consisting of one or more cities having a population of 
100,000 or more inhabitants in a county or a group of contiguous counties. 
In short, the Houston SMSA consists of the City of Houston and Harris County, 
which will be referred to as Metropolitan Houston. 

Retail Sales 

The volume of retail sales for Metropolitan Houston for 1963 was 
estimated to be $1.9 billion, compared with $1.5 billion in 1958, representing 



19 



Sales 
(Billions) 



$16 



15 



14 



13 



12 



11 



10 



Chart 1 

RETAIL TRADE --STATE OF TEXAS 
WITH PROJECTIONS TO 197 2 

(In 1958 Dollars) 




1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 



SOURCE: 1948, 19 54, 1958, and 1963 Census of Business, Retail Trade, 
Texas , U. S. Department of Commerce, Bureau of the Census. 



20 



an increase in unadjusted dollars of 27 per cent. By deflating the 1963 
dollars to the level of 1953 prices, this represents an increase of about 
21 per cent in physical volume of retail trade. The increases for the 
State of Texas were about 19 per cent in unadjusted dollar volume and approxi' 
mateiy 12 per cent in terms of 1958 dollars, indicating that the economic 
growth of the Houston community- -insofar as retail sales are a measure of 
such growth--has exceeded that of the state. This has been true for some 
years, particularly between 1948 and 1954, and between 1954 and 1958. 
Table 4 presents a tabulation of retail sales for Houston, expressed in 
1958 dollars. The table indicates that almost all of the categories listed 
showed increases, with the exception of the lumber, building materials, and 
hardware category, which showed almost a 20 per cent decline, and the 
furniture group, which had a 2 per cent decrease. 

An analysis of changes in sales between some of the categories may 
be useful in determining whether different types of retail establishments 
are being patronized for given kinds of merchandise as compared with a 
previous year. For example, sales in the general merchandise category--in 
which department stores are the most important sub-classif ication--increased , 
in terms of unadjusted dollars, by about 68 per cent. The sales volume 
of department stores between 1958 and 1963 was up by approximately 87 per 
cent. Reported sales for stores in the apparel group were about 19 per 
cent greater in 1963 than in 1958. On the other hand, the volume of women's 
apparel stores was up by only 3 per cent and sales of men's and boys' 
apparel stores increased by less than 2 per cent. 

One possible explanation of this phenomenon is the fact that during 
the same period, sales of family apparel stores increased by 57 per cent. 
It also is possible that another portion of apparel sales shifted from the 



21 



Table 4 
RETAIL TRADE --METROPOLITAN HOUSTON 
(In 1958 Dollars 3 ) 



1958 1963 b Per Cent 

Retail Store Category (000) (000) Change 



a 



Total 1,518,391 1,832,146 20.7 

Lumber, Building Materials 

And Hardware 9 5,9 32 7 6,7 89 19. 9 C 

General Merchandise Group 190,047 303,545 59.7 

Food Group 398,023 440,428 10.7 

Automotive Group 279,532 386,391 38.2 

Apparel and Accessory Group 98,260 111,252 13.2 

Gasoline Service Stations 118,393 133,670 12.9 

Furniture Group 81,160 79,283 2.3 C 

Eating and Drinking 

Establishments 92,661 115,280 24.4 

Drug Group 57,580 66,809 16.1 

Other Retail Stores 106,863 118,698 11.1 



Deflation involved use of appropriate BLS Indexes for specific categories or 
all item index when applicable. 



Sum of specific items does not equal total because of omissions, rounding, and 
use of different indexes for deflation. 
c Decrease . 

SOURCE: 1963 Census of Business, Retail Trade, Texas , Bulletin, BC63-RA45, 
U. S. department of Commerce, Bureau of the Census. 



22 

more specialized type of establishment (women's and men's apparel stores) to 
department stores. Additional light is thrown on this provocative question 
below in the analyses of sales by merchandise lines. 

Additional changes believed to be of interest (all in unadjusted 
dollars) include the following: Food store volume was up by about 16 per 
cent; automotive sales generally were about 45 per cent higher in 1963 than 
in 1958; sales of domestic car dealers were up by 55 per cent; sales of 
imported car dealers were about 126 per cent greater; domestic and imported 
franchised dealers' sales were up by 19 per cent; non-f ranchised automobile 
dealer sales were down by about 2 per cent; sales of tire, battery, and accessory 
dealers were lower by approximately 20 per cent; and, aircraft, boat, and 
motorcycle sales were up by 45 per cent. 

Also, sales in the furniture and home furnishings group dealers were 
slightly less than 3 per cent greater in 1963 than in 1958 (in unadjusted 
dollars) ; sales of furniture and home furnishings stores were 13 per cent 
greater; sales of furniture stores were up by 11 per cent; and, sales of 
household appliance stores were down by 44 per cent. 

S;»les of eating establishments in 1963 were about one-third greater 
than in 1958, and the volume for drinking establishments showed a 20 per 
cent increase. 

The volume of establishments in the lumber, building materials, 
hardware, and farm equipment group declined by about 16 per cent between 
1958 and 1963; sales of lumber yards were about 40 per cent lower; sales 
of building materials dealers were up by less than 1 per cent; hardware 
stores reported about a 15 per cent increase; and, sales of farm equipment 
dealers were up by a similar ratio. 



23 

Despite an increase in Houston sales volume of 27 per cent in unadjusted 
dollars--or 21 per cent in 1958 dc 1 lars-- be tween 1958 and 1963, the number 
of retailing establishments for the same period shewed only a slight increase, 

from 11,112 in 1958 to 11,225 in 1963. Categories which had decreases 
between 1958 and 1963 include: lumber, building materials, hardware, and 
farm equipment dealer group; the general merchandise group (but not depart- 
ment stores); the food group; franchised car dealers; men's apparel stores; 
the furniture and home furnishings group; and drug stores. The categories 
which had more establishments in 1963 than in 1958 include: department 
stores (almost twice as many establishments, believed to be caused by an 
increase in discount houses and suburban department stores) ; non-f ranchised 
car dealers (an important segment of which would be used car dealers) ; 
the apparel stores group generally, including more women's stores; and 
eating and drinking establishments. 

Additional evidence that the business of retailing appears to be 
more and mere concentrated in larger establishments is provided by the 
average annual sales of all retail stores in Houston. This average for 
1963 was about $175,000, compared with $139,000 in 1958, $98,000 in 1954, 
and about $76,000 in 1948. Sales per establishment in the general merchandise 
category were about $1.2 million in 1963, compared with about $600,000 in 
1958. Department stores showed a slight decline in average annual sales per 
establishment, from $7.9 million in 1958 to about $7,7 million in 1963. 
Department store sales in 1963 were almost twice that of 1958, but there 
were almost twice as many stores in 1963. Again, this is assumed to be due 
to a greater number of discount department stores and "legitimate" establish- 
ments opened in suburban areas, both of which typically would not be such 
large-volume establishments as the downtown store. 



24 

Average annual sales per food establishment (supermarkets being the 
most important type within this group) were $250,000 in 1963, compared with 
about $200,000 in 1958, a continuation of a trend which has been true for 
some time. The same average for the entire apparel group varied only 
slightly between the two years. However, the average for women's stores 
was less in 1963, about $184,000, than in 1958, approximately $221,000. A 
decline also was true of family clothing stores, about $455,000 in 1958 and 
$411,000 in 1963. However, men's clothing stores averaged $140,000 in 
1963, compared with $124,000 in 1958. 

The average annual sales per furniture group establishment in 1963 
was $135,000, while it was $122,000 in 1958. Average sales for franchised 
car dealers showed a significant increase, from $1.6 million in 1958 to 
$3.2 million in 1963. On the other hand, sales of non-f ranchised car 
dealers averaged less in 1963 than in 1958. Finally, hardware stores, 
eating and drinking establishments, and stores in the drug group had 
higher average sales per establishment in 1963 than in 1958. 

Average weekly earnings of all retail employees for Metropolitan 
Houston, for the full workweek ending on or about November 15, were about 
$66, compared with approximately $59 in 1958. Average weekly earnings for 
the two years for retail employees in the state were $60 and $53.50, respec- 
tively. Employees in the general merchandise category earned about $64 
in 1963 and around $62 in 1958. Average weekly earnings for employees in 
food stores were $61 and $59 for the two years. Employees in franchised 
automobile dealerships earned about $114 in 1963, compared with approximately 
$90 in 1958. The two averages for employees in the furniture group were $85 
and $71, respectively. Employees in eating and drinking establishments 



25 

averaged $43 in 1963 and $35 in 1958. Drugstore employees earned about $64 
in 1963, approximately $10 more than in 1958. 

The only two major categories of retailers in which the average 
weekly earnings of employees in 1963 were less than those of 1958 were 
department stores and establishments in the apparel group. Department store 
employees earned about $71 in 1958 and approximately $68 in 1963. Workers 
in the apparel category earned about $59 in 1958, slightly less than $1 more 
than the 1963 average. Perhaps one plausible explanation of this is the 
fact that department stores, as well as apparel stores, appear to be moving 
more in the direction of using a greater proportion of part-time help, 
catering the number of employees in a given department to store traffic, 
which may vary considerably during a given workday. Department store 
officials report this phenomenon appears to be especially true of suburban 
operations, where pools of individuals, particularly housewives desiring 
part-time work, are to be found. 

Analysis of retail trade for Metropolitan Houston by sales size 
offers additional evidence that there is a relatively large number of establish- 
ments in which sales volumes are relatively small, and conversely, a rela- 
tively small number of establishments in which sales volumes are relatively 
large. Table 5 presents a tabulation of ratios for all stores and the more 
important major categories in each of seven dollar volume groups. The table 
shows that slightly more than one-third of all Houston retail establishments 
did less than $30,000 in sales for 1963 and that less than 3 per cent sold 
$1 million or more. From the table, it also is possible to determine the 
most "important" sales volume size of each of the categories — department 
stores in the $1 million and over class; variety stores in the $100,000 to 



Table 5 

RETAIL TRADE --METROPOLITAN HOUSTON 
BY SALES SIZE 

1963 



26 



Store 
Category 



Per Cent of Establishments 



$500,000 $300,000 $100,000 $50,000 $30,000 
$1,000,000 to to to to to Less Than 
or more $999,999 $499,999 $299,999 $99,999 $49,999 $30,000 



Total All Stores 

Hardware Stores 

Department Stores 

Variety Stores 

Food Stores 

Franchised Car 
Dealers 

Filling Stations 

Men's Apparel 

Women's Apparel 

Family Apparel 

Furniture Stores 

Eating and Drinking 

Drug Stores 



.8 

97.0 

6.8 

8.1 

62.8 

.1 

1.0 

4.6 

10.1 

1.9 

.2 

1.2 



2.7 


3.7 


22.2 


20.1 


13.4 


.8 


6.6 


21.6 


31.4 


8.2 


3.0 










9.2 


10.4 


43.8 


14.9 


4.5 


4.9 


4.8 


26.2 


19.8 


10.9 


17.0 


2.1 


11.7 


3.2 


2.1 


.1 


.9 


34.7 


34.8 


14.9 


3.0 


9.1 


29.3 


21.2 


10.1 


11.8 


3.3 


24.4 


24.9 


13.8 


9.1 


13.1 


21.2 


15.1 


9.1 


2.9 


6.2 


27.8 


14.3 


8.6 


.7 


1.8 


11.4 


15.3 


16.4 


6.7 


14.3 


40.2 


19.1 


9.7 



34.7 
30.6 

10.4 
25.3 

1.1 

14.5 
26.3 
17.2 
22.3 
38.3 
54.2 



SOURCE: 1963 Census of Business, Retail T-ade, Sales Size , Bulletin BC63-RS2 
U. S. Department of Commerce, Bureau of the Census. 



27 

$299,999 group; and, women's apparel in either the $100,000 to $299,999 
group or the $50,000 to $99,999 category, as a few selected examples. 

The Census of Business failed to provide information for metropolitan 
areas relative to sales figures for each of the dollar volume categories 
as was done for states, from which it would be possible to determine the 
percentage of sales coming from a given percentage of establishments, which 
analysis was done previously for the State of Texas (see Table 3). However, 
there is no reason to believe that the figures for Houston would be appre- 
ciably different from those for the state--except perhaps that it might be 
found that there is an even greater concentration of sales in a smaller 
proportion of establishments than was true for Texas. 

Retail Sales by Merchandise Lines 

The Census of Business in 1963 provided information relating to 
retail sales, not only by establishments in given categories, but also by 
broad merchandise lines, enabling students of business administration, 
generally, and marketing, specifically, together with the business community, 
to analyze sales of particular lines of goods in terms of the types of 
establishments making such sales. This is but one of perhaps several different 
analyses that might be made. The year 1963 was the first time since 1948 
that this additional analysis had been made by the Census of Business . 
The preface of the bulletin, 1963 Census of Business, Retail Tiade, 
Merchandise Line Sales, West South Central States , Bulletin BC63-RS7H, states: 
"The needs of important segments of the economy, including manufacturers, 
wholesalers, and other marketing groups, newspapers and various advertising 
media, retailers, and Government agencies, led to a widespread demand for 
the resumption of retail merchandise line statistics which had not been 
collected since the 1948 Census of Business." 



One analysis of sales by merchandise lines is presented in Table 6. 
In a very r^.nl sense, the second column in this table provides a breakdown 
of how consumers in the Houston area spend a retail dollar. Many studies 
have been done in the past few years, the purpose of which were to show how 
individuals or families spend their income, or personal consumption expendi- 
ture studies as they are sometimes called. These studies, of course, show a 
total breakdown of expenditures and not an analysis of spending done in 
retail establishments. The real value of the information in Table 6 is to 
show the types of items that are being bought, rather than the establishments 
where transactions occur. 

Expenditures for automobiles and food items represent about 40 per 
cent of all spending in retail establishments. Spending for packaged 
alcoholic beverages and tobacco products exceeds expenditures made for men's 
and boys' clothing. Amounts spent for women's and girls' apparel in 1963 
were almost twice the amount spent for men's and boys' clothing. Expendi- 
tures for alcoholic beverages were greater than amounts spent for all 
footwear . 

Another type of analysis made possible by the statistics on 
merchandise line sales is presented in Table 7. Five selected types of pro- 
ducts were chosen for the purpose of learning where such items were purchased, 
and the results, at least in some cases, are surprising. The table shows 
rather clearly that department stores are of groat importance in the purchase 
of women's apparel, footwear, hardware, and appliances. This, in itself, 
is not particularly surprising, but when a comparison is made of the proportion 
of women's apparel bought in department stores as compared with women's 
apparel stores, it is found that more than twice as much women's clothing 
is purchased in department stores. 



Table 6 

RETAIL TRADE --METROPOLITAN HOUSTON 
BY MERCHANDISE LINES 

1963 



29 



Sales Reported by- 
Merchandise Lines 



Total 

Groceries—Other Foods 

Meals — Snacks 

Alcoholic Drinks 

Packaged Alcoholic Beverages 

Cigars, Cigarettes, Tobacco Products 

Cosmetics, Drugs, Health Needs, Cleaners 

Men's and Boys' Clothing, Exc. Footwear 

Women's and Girls' Clothing, Exc. Footwear 

All Footwear 

Curtains, Draperies, Dry Goods 

Major Appliances, Radio, TV, Musical Insts. 

Furniture, Sleep Equipment, Floor 

Coverings 
Kitchenware, Home Furnishings 
Jewelry, Optical Goods 
Sporting, Recreation Equipment 
Hardware 

Lumber, Building Materials 
Automobiles, Trucks 
Auto Fuels, Lubricants 
Tires, Batteries. Accessories 
Farm Equipment , Machinery 
Hay, Grain, Feed, Farm Supplies 
Household Fuels, Ice 
All Other Merchandise 
Non-Merchandise Receipts 



Sales 


(000) 


1,610 


950 


343 


253 


79 


235 


10 


580 


32 


714 


36 


867 


77 


154 


59 


843 


115 


940 


37 


103 


32 


29 5 


51 


017 


52 


824 


23 


626 


18 


129 


18 


30 3 


18 


994 


44 


364 


291 


284 


83 


,813 


55 


672 


2 


704 


4 


,325 


3 


,272 


53 


,694 


52 


,298 



Per Cent 



100.0 
21.3 
4.9 
0.7 
2.0 
2.3 
4.8 
3, 
7 
2 
2 



3.2 

3.3 
1.5 



1, 

1, 
1. 

2, 
18. 
5, 
3, 
0, 



0.3 



SOURCE: 1963 Census of Business, Retail Trade, Merchandise Line Sales, West 
South Central States , Bulletin BC63-RS7H, U. S. Department of Commerce, Bureau 
of the Census. 



I i 



30 



2 
O 
H 
co co 





< 


Pd 






H 


CO 






H 


H 






iJ 


Q 




r-- 


O 


a 




QJ 


CX 

o 


£ 


ro 


1 — i 


p!) 


u 


o 


X 


H 


pd 


o 


CO 


M 


rv] 


r^ 


H 


1 
1 


Q 






w 


W 






Q 


H 






& 








H 








►J 


CO 






h-4 








< 


>■ 






H 


to 






W 








2 







u 

° 

cj 



43 
ffl 
CU 
5-4 u 
O C 
•I—) co 
CO -H 



D. 
< 



CO 
Ofl 

X) -r-l 

C X 

CO 4-1 

o 

en i— i 

- CJ 

c 

0) - 

£ en 

O r-4 

3 S-. 

•H 

o 



X X! 

O (U 

•H 4-J 

rC U 

3 o 

a 

C QJ 

•H ffj 

qj w 

vj a) 

O t-4 

4-J CO 

co co 



<t o 



vO c~^i cn 

LT\ i—( 



O cn 

i— i in 



00 






CN 



mo ex) vD cni oo m 

On i—l (ON o cjn 



<j- 



00 oo <t 



<j- r^ r^ 

m 






m con 

CNI 



oo <r o 

i— i i— i m 



r^ st ^ 



O CN CN 

m 



i— I vO o i— I 

■—I m cn co 
■—I cn 



in on cn 
on <c cn 



O r-^ O 



m <f r-4 

CN i—l 



4J 

(U 



CO 

> 



XI 
0) 



•r-l CO 

>-l qj 

T3 O 

c w 

CO CO 



c c 

cu qj 
E E 

4-J 4-1 

S-l l-l 

CO CO 

ex ex 

a) cu 

Q O 



cn co 

<U > 

5-i 

O X) 

cn 4-i c 

0) CO CO 

a cu a) 

4-1 CO CO 

CO "i-i -H 

-a -a 

>. c c 

4-1 CO CO 

CD X Xi 

•H U CJ 

M M h 

co ai cu 

> g 2 

X) ■— I i—l 

QJ CO CO 

4-i 5-4 5-i 

•H QJ QJ 

£ C C 

•H QJ QJ 

.-J O O 



QJ 

e 

en 



JO. 

CO 

4-J 

in 
W 

00 

c 

CO -H 

QJ ^ 

u C 

O T-l 



CO 

QJ 10 



co 

0) 
r-4 

o 

4-1 

co 



4J 5-1 

co Q 

CX X) 

3 c 

O CO 

CJ 00 

C 

-a -h 

O 4-) 

o CO 
Pn W 



OO 
3 

a 4-i 
^ o 

O .-I 
SH CJ 

u 

cn 

00- 

3 C 

S-i QJ 

a S 



bO 
C bO 

•h e 

4-1 X 



CO 

cn qj 



CJ 



O QJ 
r-4 M 

CJ o 



cn 
cn x) 

CO 



>, CO J-J 
C r-l QJ 

QJ -H QJ JD 



Ci_, CO ,-4 33 fx< 



in 

a) 
j-j 

o 
j_) 

CO 

4-1 CO 

ti QJ 

0) }-i 

£ 

CX 4-1 

•r-l CO 

3 

cr qj 

w cj 

C 

QJ CO 

S -H 

O r-l 

K ex 

ex 

<£ < 

QJ T3 

S-l r-l 

3 O 

4-1 -C 

■r-l QJ 

C co 

5-i 3 

3 O 

fa X 



in 

QJ 

r-l CO 

O QJ 

J-J S-i 

CO o 



CX -H 
■r-l CO 

3 -r-l 

CT > 

W QJ 



10 
0) 

r-l 
O 

co 

4-1 

C 
QJ 
6 

i-l 

CO CO 4-J 
QJ CX CO 

r-l O C 

O rC H 

4-1 CO 



o 

o 



00 



QJ 

D 
CO 

o 

f— I 

•~\ cj 

CO CO 

QJ -r-l 

c a 



rC XI 

CJ 

CO 

00 

C o 



o 

c 

CO 
O CX 
r> QJ 

< ^ 

u 

in 



u3 co 






XJ 

r-l 

o 
in cj 



u 



CO 



5-i 
O 

cr c 

•r-l O 



O 

C- 
0) 



QJ X) 

X, G 

4-1 CO 

o 



rJ 
< 

H 

O 
H 



PQ 



CX 

O 
cj 
u 

CO 
XI 

O 
H 



in 

QJ CO 



QJ 

S-l QJ 

CO O 



00 

•r-l 



cn 

5-4 

CO CO 
00 
•i-4 

u 
o 



CO 

u 

■r-4 

10 
D 

-3 



ai 

H 



Xi 
cfl 



in 
QJ 

XI 
3 

I— I 

CJ 

c 



CO 
OJ 
3 

4-J 

o 
o 
Pn 

00 

c 

•r-l 

X 
3 

, — I 
cj 
X 

w 

co 



31 

Department stores are almost as important as are sloe stores in the 
sale of all footwear. They are more important in the sale of hardware 
items than are hardware stores, and they are almost four times as important 
as household appliance stores in the sale of major appliances. 

The column relating to tobacco sales for the most part is much as 
would be expected, except for the fact that more than 15 per cent of 
tobacco sales (probably cigarettes exclusively) were from vending machines. 
This ratio exceeds slightly that of drugstores, which a few years ago 
certainly would have been important sellers of tobacco products. One perhaps 
would not have to go back too many years to find the ratio of tobacco sales 
exactly reversed, between food stores and drug stores, as it appears in the 
table. 

Unfortunately, it is not possible to study trends in terms of 
merchandise line sales from Census of Business statistics, but the methods 
followed in the data gathering in 1948, the last year the analysis was 
available, were somewhat different from those used in 1963, making the 
comparability questionable. It is hoped that the C ensus of Business will 
continue this particular analysis with future publications. 

Another analysis believed to be of value from the statistics on 
merchandise line sales is presented in Table 8, which shows a breakdown, 
both by dollars and by ratios, of the types of merchandise sold by department 
stores in Houston during 1963. The table reveals the important types of 
merchandise sold by department stores, and conversely, those types of items 
which are relatively of lesser importance. Over one-fifth of department 
store volume was in women's and girls' clothing, and by combining men's and 
boys' apparel and all footwear, such items represented close to 40 per cent 
of all sales made by such establishments. It would be of considerable 



32 



Table 8 

RETAIL TRADE --METROPOLITAN HOUSTON 

BY MERCHANDISE LINES 

DEPARTMENT STORES 

19 63 



Merchandise Line Sales Per Cent 

(000) 



Groceries--Other Foods 8,451 3.3 

Meals--Snacks 3,452 1.4 

Packaged Alcoholic Beverages x a x 

Cigars, Cigarettes, Tobacco Products x x 

Cosmetics, Drugs, Health Needs, Cleaners 8,332 3.3 

Men's and Boys' Clothing, Exc. Footwear 24,688 9.8 

Women's and Girls' Clothing, Exc. Footwear 57,295 22.6 

All Footwear 13,633 5.4 

Curtains, Draperies, Dry Goods 18,422 7.3 

Major Appliances, Radio, TV, Musical Insts. 22,382 8.8 
Furniture, Sleeping Equipment, Floor 

Coverings 13,69 3 5.4 

Kitchenware , Home Furnishings 9,567 3.8 

Jewelry, Optical Goods 4,026 1.6 

Sporting, Recreation Equipment 4,615 1.8 

Hardware 6,574 2.6 

Lumber, Building Materials 6,405 2.5 

Auto Fuels, Lubricants x x 

Tires, Batteries, Accessories x x 

Farm Equipment, Machinery x x 

All Other Merchandise 10,728 4.2 

Non-Merchandise Receipts 17 ,606 7 .0 

TOTAL 2 53,17 5 100.0 



a Withheid to avoid disclosure. 

SOURCE: 1963 Census of Business, Retail Lade, Merchandise Line Sales, 
West South Central States , Bulletin BC63-RS7H, U. S. Department of Commerce, 
Bureau of the Census. 



I 
I 
I 



33 

value to businessmen and to students of business to be able to make com- 
parisons between 1963 and previous periods in order to study trends. 

Retail Sales of Central Business District and Suburban Areas 

One of the most phenomenal developments in the field of retailing — 
and probably also in marketing generally — has been the growth of suburban 
shopping facilities. Most of these facilities have been called planned 
shopping centers, probably for the purpose of not confusing them with 
"unplanned" or "strip developments" which have characterized most communities, 
and certainly metropolitan areas, for a good many years. The planned shop- 
ping center has been almost entirely a development occurring only after 
the end of World War II, and generally has been the result of a lack of 
shopping facilities in suburban areas, and has been particularly true 
of those communities which have grown "out" rather than "up." 

Despite a great deal of theory relating, to shopping center develop- 
ments, it probably would be safe to say that they have been emminently 
successful in many communities because they have made it possible for 
the suburban housewife, specifically, and the suburban family, generally, 
to avail themselves of a more or less acceptable smaller version of a down- 
town shopping area, but one possessing considerably more convenience than 
the central shopping district. 

It would be most difficult to find groups not interested in some 
phase of suburban shopping center developments. Certainly the suburban 
housewife, with limited time and mobility, is vastly interested in 
finding a shopping facility more convenient to her. Landowners and realtors 
have expressed a considerable degree of interest in the phenomenon, and 
certainly retailing es tablishments — at least those managed by modern, 
far-seeing, and progressive men— have been very much interested. 



I 



34 

As an indication of its awareness of ihis interest, the Department 
cf Commerce and the Census of Business , have, for some time, compiled 
statistics relating to retail trade of both downtown and other than down- 
town areas. The Census cf Business defines the Houston Central Business 
District as that area comprising census tracts 23, 24, 25, 2t , 27, 31, 32, 
33, and 39. The area is bounded on the north by juffalo Bayou; on the east 
by Milby, Walker, and Dowling; on the south by Alabama as far west as Main 
Street; after which the boundary moves in a northwesterly direct. on follow- 
ing either Burlington or Taft until the Bayou is reached. 

The particular interest in suburban shopping center development 
might be expressed in terms of the following question: "To w'.at extent 
have retail sales continued in the downtown area as compared with the level 
of sales being made in suburban districts?" 

Retail sales of Metre politan Houston between 1958 and 1963 
increased, in terms of 1958 dollars, by about 21 per cent. A : : the same 
time, sales of establishments in the Central Business District declined 
by 5 per cent. Table 9 presents a tabulation of retail trade for 
Metropolitan Houston for 1958 and 1963, showing the rate of change for the 
period for both areas. With the exception of two categories-- lumber , 
building materials, and hardware and stores in the furniture greup--all 
categories in the metropolitan area showed rather substantial increases, 
ranging from a high for the general merchandise group of almost 60 per 
cent and sales of dealers in the automotive group of close to 50 per 
cent, to somewhat smaller increases--the food store group increase w*s 
about 11 per cent, approximately the rate of increase for the "other 
retail store" category. 



I 



35 



Table 9 

RETAIL TRADE --METROPOLITAN HOUSTON AND 
CENTRAL BUSINESS DISTRICT 

(In 1958 Dollars 3 ) 









Metropolitan 


Central Business 






Hi us ton 


District 


Retail Store 


1958 


1963 b Per Cent 


1958 1963 b Per Cent 


Category 


(000) 


(000) Change 


(000) (000) Change 



Total 



1,518,391 1,832,146 



-20.7 356,689 338,627 



-5.1 



Lumoer. Building 
Materials and 
Hardware 



95,932 76,789 



19.9 



6,157 



5,703 



•7.4 



General Merchandise 
























Group 


190 


,047 


30 3 


,545 


+59, 


.7 


80 


,901 


74,877 


-7 


.5 


Food Group 


39 8 


,023 


440 


,428 


+ 10, 


.7 


17 


,743 


14,051 


-20, 


.8 


Automotive Group 


279 


,532 


386 


,391 


+38, 


,2 


111 


,313 


131,139 


+17, 


.8 


Apparel, Accessories 


98 


,260 


111 


,252 


+ 13, 


.2 


46 


,133 


36,203 


-21, 


.5 


Service Stations 


118 


,393 


133 


,670 


+ 12, 


.9 


6 


,669 


6,862 


+2. 


,9 


Furniture Group 


81 


,160 


79 


,283 


-2. 


.3 


27 


,207 


19,027 


-30. 


.1 


Eating and Drinking 
























Establishments 


92 


,661 


115 


,280 


+24, 


,4 


18 


,101 


16,570 


-8. 


,5 


Drug Group 


57 


,580 


66 


,809 


+ 16. 


1 


9. 


,810 


8,596 


-12. 


.4 


Other Retail Stores 


106 


,863 


118. 


,698 


+ 11. 


,1 


32 : 


,655 


25,598 


-26. 


2 





Deflation involved use of appropriate BLS Indexes for specific categories or all item 
index when applicable. 

Sum of specific items does not equal total because of omissions, rounding, and use 
of different indexes for deflation. 



SOURCE: 1963 Census of Business, Major Retail Centers, Houston, Texas, Standard 
Metropolitan Statistical A ea , Bulletin BC63-MRC-44, U. S. Department of Commerce 



I 
I 
I 
I 

I 
I 



36 

Table 10 presents a tabulation of the rate of change for Metropolitan 
Houston and the Central Business District, but adds the rate of change for 
what is called suburban Houston. Suburban Houston, as the footnote of the 
table indicates, is the difference between Metropolitan Houston and the 
Central Business District. The rates of change were computed on the basis 
of unadjusted or current dollars. In spite of this, some of the changes 
are surprising. The total for all Suburban Houston stores was a 35 per cent 
increase, and it is shown that all categories, with the exception of 
lumber, building materials, and hardware dealers, showed very substantial 
increases, the lowest increase being 18 per cent for the food group. Sales 
of dealers in the general merchandise category in suburban areas more than 
doubled between 1958 and 1963. 

Table 11 compares sales of Suburban Houston with the Central Business 
District for 1958 and 1963, again in terms of 1958 dollars. Even in deflated 
dollars, all categories--with the exception of lumber, building materials, 
and hardware — showed rather significant increases. Sales of automotive dealers 
were 50 per cent more than in 1958, and sales of suburban establishments 
in the general merchandise group were, again, more than double those of 
the previous year. 

Still another approach to the increasing importance of suburban 
shopping centers and their impact upon total sales of the Houston area is 
presented in Table 12, which shows the ratio that Central Business Districts 
sales were of sales in suburban areas for 1958 and 1963. In all but one 
category-- lumber , building materials, and hardware--the 1963 ratio is less 
than of 1958, and in some of the categories, the changes were highly 
significant. For example, in 1958, about three-fourths of total sales in general 
merchandise establishments were made by downtown stores, but in 1963 the 



I 



37 



Table 10 

RETAIL TRADE- -METROPOLITAN HOUSTON AND 
CENTRAL BUSINESS DISTRICT 
PER CENT CHANGE IN SALES 

1958 tc 1963 



Store Category 



Central 

Business 

District 



Per Cent Changes 



Metropoli tan 
Houston 



Suburban 
Houston 



Total All Stores 

Lumber, Building Materials, 
and Hardware 

General Merchandise 

Food Group 

Automotive Group 

Gasoline Service Stations 

Apparel Group 

Furniture Group 

Eating and Drinking Places 

Drug Group 

Other Retail Stores 



- .05 

-2.5 

-2.6 

-16.7 

4-2.4 . 1 
+8.3 

-17.4 

-26.4 
-3.6 
-7.7 

-17.5 



+27.0 

-15.7 
+68.2 
+16.5 
+45.5 
+18.9 
+19.2 
+2.8 
+30.9 
+22.2 
+17.1 



+35.3 

-16.6 
+120.6 
+18.0 
+59.7 
+19.5 
+51.6 
+17 . 6 
+39.4 
+28.3 
+32.2 



, Changes computed on basis of current or unadjusted dollars. 
Metropolitan Houston less Central Business District. 

SOURCE: 1963 Census of Business, Major Retail Centers, Houston, Texas, 
Standard Metropolitan Statistical Area , Bulletin BC63-MRC-44, U. S. Department 
of Commerce, Bureau of the Census. 



Table 11 

RETAIL TRADE- -SUBURBAN HOUSTON AND 
CENTRAL BUSINESS DISTRICT 

(In 1958 Dollars 3 ) 



38 



Retail Store 
Category 



Total all Stores 

Lumber, Building 
Materials, Hardware 

General Merchandise 

Food Group 

Automotive Group 

Apparel, Accessories 

Service Stations 

Furniture Group 

Eating and Drinking 
Estab lishments 

Drug Group 

Other Retail Stores 



Suburban Houston 



Central Business 
District 



1958 
(000) 



1963 c 
(000) 



Per Cent 
Change 



1958 
(000) 



1963 c 
(000) 



1,161,702 1,493,519 +28.6 



89,775 
109,146 
37 2,280 
168,219 

52,127 
111,724 

53,953 



71,086 -20.8 

228,668 +109.5 

426,377 +14.5 

255,252 +51.7 

75,049 +43.9 

126,808 +13.5 

60,256 +11.7 



74,560 98,710 +32.4 
47,770 58,213 +21.9 
74,208 93,100 +25.5 



356,689 338,627 



Per Cent 
Change 



•5.1 



6,157 


5,703 


-7, 


.4 


80,901 


74,877 


-7 , 


.5 


17,743 


14,051 


-20. 


.8 


11,313 


131,139 


+17, 


.8 


46,133 


36,203 


-21, 


.5 


6,669 


6,862 


+2, 


,9 


27,207 


19,027 


-30, 


,1 


18,101 


16,570 


-8, 


.5 


9,810 


8,596 


-12, 


,4 


32,655 


25,598 


-26, 


,2 



Deflation involved use of appropriate BLS Indexes for specific categories or all item 
index when applicable. 

Metropolitan Houston less Central Business District. 
c Sum or specific items does not equal total because of omissions, rounding, aid use 
of different indexes for deflation. 

SOURCE: 1963 Census of Business, Major Retail Centers, Houston, Texas, Standard 
Metropolitan Statistical Area , Bulletin BC63-MRC-44, U. S. Department of Commerce, 
Bureau of the Census. 



Table 12 

RETAIL TRADE- -METROPOLITAN HOUSTON 
CENTRAL BUSINESS DISTRICT SALES 
AS A PER CENT OF 
SUBURBAN HOUSTON SALES 3 



39 



Retail Store Category 



1958 



1963 



Total All Stores 

Lumber, Building Materials, Hardware 

General Merchandise Group 

Food Group 

Automotive Group 

Apparel Group 

Gasoline Service Stations 

Furniture Group 

Eating and Drinking Establishments 

Drug Group 

Other Retail Stores 



30.7 

6.9 

74.1 

4.8 

66.2 

88.5 

5.9 

50.4 

24.3 

20.5 

44.0 



22.7 

8.0 

32.7 

3.3 

51.4 

48.2 

5.4 

31.6 

16.8 

14.8 

27.5 



Metropolitan Houston less Central Business District 

SOURCE: 1963 Census of Business, Major Retail Centers, Houston, Texas, 
Standard Metropolitan Statistical Area , Bulletin BC63-MRC-44 , U. S. Department 
of Commerce, Bureau of the Census. 



40 

proportion had dropped to approximately one-third. Close to 90 per cent of 
all apparel sales were made in central business district stores in 1958, 
compared with less than 50 per cent in 1963. 

From the preceding evidence, it is clear that suburban shopping facili- 
ties have had an enormous impact upon the retail sales picture of the 
Houston area. Despite this, downtown establis' ments continue to be of con- 
siderable importance, as any shopper who patronizes downtown stores would 
agree. These stores did more than $350 million worth of business in 1963, 
very slightly less than their volume in 1958. 

Table 13 presents a tabulation of estimated sales volume of some of 
the mere well-known shopping centers in the Houston area, together with the 
rate of change between 1958 and 1963 for those centers in existence in 1958. 
Some of the increases for the shopping centers shown were considerable. In 
the case of Northline Center, as the footnote indicates, the center did 
not open for business until March of 1963, and one of its department stores, 
Joske ' s , did not open until February of the next year. As a result, its 
sales volume ranking today undoubtedly would be higher than that shown in 
the table. Also, Pasadena Plaza, while operating the entire year of 
1963, opened for business in April of 1962. 

Wholesale Trade 

Houston's wholesale establishments in 1963 had a sales volume of 
approximately $4.5 billion, compared with $3.6 billion in 1958, representing 
an increase of 23 per cent. Wholesale sales for the State of Texas increased 
by 27 per cent for the same period. 

Wholesale sales of machinery, equipment, and supplies were about 
$590 million in 1963, an increase of 18 per cent over 1958. Sales of 



Table 13 

RETAIL TRADE --METROPOLITAN HOUSTON 
SALES OF SELECTED SUBURBAN SHOPPING AREAS 



41 



Shopping Area 



1958 
(000) 



1963 


Per Cent 


(000) 


Change 3 


54,084 


+84 . 1 


31,7 80 




2b, 586 


+95.5 


26,395 




25,689 


+24.9 


19,781 c 




16,922 


+65.7 


7,581 





Gulfgate Shopping City 

2 
Sharpstown Center 

3 

Palms Shopping Center 

Long Point Plaza 

Garden Oaks Shopping Center" 

6 

Northline Shopping Center 

Meyerland Plaza 

Q 

Pasadena Plaza 



29,385 
b 

13,602 
b 

20,568 
b 

10,211 
b 



Computed on basis of current or unadjusted dollars. 

Center not open in 1958 or figures not available. 

Center not open for business for all of 1963. 
''"Includes planned center and area bounded by: Winkler, Reveille, South Side of 
Holmes, Telephone Road, and Plum Ci eek Lane. 

Includes planned center on north side of Bellaire Blvd. between Southwest 
Freeway and Fondren Road. 

^Includes planned center and establishments on Griggs Road from Millartto 
Sunrise, and on South Park Blvd. from Griggs to Browncroft. 

Includes planned centers known as Long Point Plaza, Spring Village, Ridgecrest 
Shopping Center, and Weingarten's Long Point Shopping Center, and establishments 
on Long Point Road from Johanna Street to Bingle Road, and in the 1700 and 1800 
blocks of Wirt Road and Bingle Road. 

^Includes planned center and establishments on North Shepherd in vicinity of 
Heidrick Avenue. 

"Includes planned center on east side of North Fieeway from Cross Timbers to 
Lyerly . 

'Includes planned center and establishments on S. Post Oak from Beechnut to 
Jackwood, and on Beechnut from S. Post Oak to S. Rice. 

Q 

"Includes planned center and are bounded by: north side of Spencer Highway, east 
side of S. Shaver, "I" Avenue, Allen-Genoa Road, and Stewart. 

SOURCE: 1963 Census of Business, Major Retail Centers, Houston, Texas, Standard 
Metropolitan Statistical Area , Bulletin BC63-MRC-44 , U. S. Department of Commerce 
Bureau of the Census. 



I 
I 

I 
I 



42 

automotive equipment and supplies were about $580 million, up by more than 
60 per cent from 1953. Grocery and related products sales were 13 per cent 
greater in 1963 than in 1958. Drug and chemical wholesale sales increased 
by 40 per cent. Lumber and construction materials' volume was up by more 
than 50 per cent. 

Electrical goods wholesale volume was around 43 per cent more in 
1963 than in 1958; hardware, plumbing, and heating equipment volume was 
12 per cent greater; and dry goods and apparel sales were 9 per cent more 
in 1963. Wholesale volume of farm product raw materials was close to 
50 per cent less in 1963 than in 1958. Sales of fresh fruits and vegetables 
were off by about 7 per cent. Wholesale sales of tobacco and tobacco pro- 
ducts were almost the same in 1963 as in 1958. 

Average weekly earnings of employees in wholesale establishments in 
the Houston area for the week ending on or about November 15, 1963, were 
about $117, compared with an average of $105 for the State of Texas. The 
Houston average for the same week in 1958 was approximately $100. The $117 
average weekly earnings compares with $66, the average weekly earnings of 
all retail employees in Houston for 1963. 

Workers in all categories of wholesale trade earned more in 1963 
than in 1958. Some of the categories and the average weekly earnings are as 
follows: motor vehicles and automotive equipment, $113; dry goods and 
apparel, $93, groceries and related products, $84; electrical goods $126; 
hardware, plumbing, and heating equipment, $113; tobacco and tobacco pro- 
ducts, $94; petroleum bulk stations and terminals, $118; and, beer, wine, 
and alcoholic beverages, $123. 

Average annual sales per wholesale establishment were estimated to 
be about $1.6 million in 1963, a slight increase over 1958. The comparable 



43 

average for the State of Texas, as pointed out earlier, was approximately 
$1 million. Almost all of the categories showed increases, as compared 
with 1958. Two exceptions were found in the case of tobacco and tobacco 
products establishments, where the average of $2.5 million was slightly 
less than the 1958 figure, and hardware, plumbing, and heating equipment, 
$.9 million compared with $1.0 million in 1958. Also, average sales per 
establishment in the machinery, equipment, and supplies category in 1963 
were approximately the same as in 1958, about $.8 million. 

Some of the categories, together with average annual sales per 
establishment, are as follows: motor vehicles and automotive equipment, 
$2.1 million; groceries and related products, $1.9 million; electrical 
goods, $1.3 million; petroleum bulk stations and terminals, $2.5 million; 
and alcoholic beverages, $2.9 million. 

The Houston community had about 2,800 wholesale establishments in 
1963, which represents approximately 17 per cent more than the number of 
establishments in 1958. About three-fourths of these were merchant whole- 
salers, approximately the same number as in 1958. 

Service Establishments 

Metropolitan Houston in 1963 had slightly more than 8,800 service 
businesses, which represents an increaseof about 14 per cent over 1958. For 
the same period, Texas had about 8 per cent more establishments. Of the 
approximately 8,800 establishments, about 40 per cent of them were in 
the personal services category. Approximately 18 per cent were classified 
as miscellaneous business services , 17 per cent were miscellaneous repair 
businesses, while 15 per cent were in the auto repair and auto services 
category. 



44 

These establishments had receipts in 1963 of about $129 million, 
representing an increase in current dollars of almost 50 per cent over 
1958, and an increase in 1958 dollars of about 42 per cent. Both of these 
increases exceeded those of the state--35 per cent in unadjusted dollars 
and 28 per cent in 1958 dollars. 

Also, these increases were greater than gains in retail sales for 
the period for Houston—about 27 and 21 per cent in current dollars and 
1958 dollars, respectively. They were also greater than the increase in 
wholesale sales, which was about 23 per cent. Perhaps this might be 
construed as evidence that a greater portion of consumers' dollars is 
going to pay for the cost of services. 

Some of the service establishment categories, together with increases 
in receipts for 1963 compared with 1958, expressed in 1958 dollars, include: 
personal service establishments showed a 28 per cent increase; auto repair 
firms did 15 per cent more business in 1963; miscellaneous repair service 
businesses had 45 per cent greater receipts; and, amusement and recreation 
businesses except movie theaters had 86 per cent greater receipts in 1963. 
Motion picture theater receipts were only slightly greater in 1963 than in 
1958--about 2 per cent. 

Average annual receipts per establishment for all service businesses 
in 1963 were approximately $44,000. Motion picture theaters averaged 
about $167,000; personal service firms about $23,000; auto repair firms 
about $41,000; miscellaneous repair companies approximately $29,000; and, 
amusement and recreation establishments about $49,000. Each of these 
averages in 1963 was greater than the 1958 figure. 

On the basis of a 315 workday year, average daily receipts for all 
Houston's service businesses was about $140. The personal service category 



45 

average was about $108, the auto repair firm's figure was about $132, and 
the average daily receipts for miscellaneous repair companies was approxi- 
mately $92. 

1968 and 1972 Retail Sales Projection 

If the same technique, the least squares method, is employed for 
the sales projection for the State of Texas, Metropolitan Houston's retail 
sales — expressed in 1958 dollars — should be approximately $2.1 billion 
in 1968 and $2.3 billion in 1972. The 1972 estimate represents an increase 
of about 26 per cent, as compared with the known 1963 volume of sales. 
See Chart 2. 



I 
I 
I 

I 
I 
I 
I 
I 



46 



Sales 
(Billions) 



$2.50 



2.25 



2.00 



1.75 



1.50 



1.25 



1.00 



.75 



Chart 2 

RETAIL TRADE --METROPOLITAN HOUSTON 
WITH PROJECTIONS TO 197 2 

(In 1958 Dollars) 




1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 



SOURCE: 1948, 1954, 1958, and 1963 Census of Business, Retail Trade, Texas , 
U. S. Department of Commerce, Bureau of the Census. 



I 
I 
I 
I 



UNIVERSITY OF FLORIDA 



3 1262 05567 2728 



6 cr o • V 



U. OF F. LIBRARIES